The Open Electricity Market (OEM) programme was first unveiled in October 2017 by the Electricity Market Authority (EMA) to liberalise and stimulate innovation in the power business.
In May 2019, all Singapore households will have the option of switching from the Singapore Power (SP) Group to their chosen electricity provider.
Types Of Electricity Price Plan Offered
An individual can do the open market electricity comparison and then choose the appropriate price plan. Most OEM retailers offer three different pricing options.
This is similar to the electrical strategy of SP Group. Individuals sign a contract with them and agree to pay a certain rate for the power they use. For obvious reasons, all power retailers are offering competitively priced fixed price plans.
Discount Off Regulated Tariff Plan
The amount customers pay is based on the regulated tariff set by the European Medicines Agency (EMA), but with a discount. Since SP Group’s price plan is always decided by EMA’s governed tariff. This means an individual will always pay less than what they would spend if they were on a DORT plan with SP Group.
Peak and off-peak packages are examples of this, in which the electricity retailer charges increased costs in peak hours and cheaper costs during off-peak hours. If someone is generally awake during off-peak hours, this is ideal for those individuals.
It has been observed that Fixed Price Plans are less expensive than paying SP based on the current power tariff.